DIRECTIONS

Let eggs stand at room temperature for 30 minutes. Line a greased 13-in. x 9-in. baking pan with waxed paper. Grease and flour the paper; set aside.
    In a saucepan, melt chocolate in water over low heat; cool. In a large mixing bowl, cream butter and sugar until light and fluffy. Add egg yolks, one at a time, beating well after each addition. Add chocolate mixture and vanilla; mix well. Combine flour, baking soda and salt; add to creamed mixture alternately with buttermilk, beating well after each addition. In a small mixing bowl and with clean beaters, beat egg whites until stiff peaks form; fold into batter.
    Spread batter evenly into prepared pan. Bake at 350° for 50-55 minutes or until a toothpick inserted near the center comes out clean. Cool for 10 minutes before inverting onto a wire rack to cool completely. Remove waxed paper.
    For frosting, combine the milk, sugar, egg yolks, butter and vanilla in a large saucepan; cook and stir over medium heat until thickened. Remove from the heat; stir in coconut, pecans and vanilla. Beat until frosting is cool and achieves spreading consistency. Place cake on a serving platter; spread frosting over top and sides. Yield: 12-15 servings.